A：The data center segment significantly contributed to AMD's overall financial performance by recording a 57% year-over-year revenue growth, reaching $3.7 billion. This growth was attributed to the server CPU share gained due to the ramp of fifth-generation EPYC processors and sustained demand for fourth-generation EPYC chips. Notably, all major cloud providers ramped deployments of EPYC instances, leading to more than doubling in the number of Epic-powered cloud instances activated by enterprise customers year over year.

A：AMD is preparing for future growth in its AI business by continuing to innovate with new products and technology updates. This includes the upcoming launch of the 5th Gen EPYC processors at TSMC's new Arizona fab, with first production shipments expected in the second half of 2025. Long-term, AMD has announced its next-generation EPYC processors, called Venice, which will be the lead HPC products for TSMC's 7nm process node. The company is also advancing the development of its AI solutions, with the release cadence of AI software shifted to bi-weekly updates and increased developer enablement. Upcoming product launches include the MI 400 series, which is designed for both inferencing and training, and is set to launch next year, significantly expanding AMD's AI accelerator market presence.

A：AMD's AI offerings had a significant impact on the company's revenue and customer adoption, with data center AI business revenue increasing by a substantial double-digit percentage year over year. The ramp-up of MI 325x shipments supported new enterprise and cloud deployments. More than 3000 MI 300 series platforms are in production across all leading service providers, catering to the expanding number of Instinct GPU deployments with cloud, enterprise, and AI customers. Additionally, multiple hyperscalers have expanded their use of Instinct accelerators for a range of generative AI, search ranking, and recommendation use cases, driving strong customer engagement and adoption.

A：Strategic partnerships and technological advancements are contributing to AMD's AI business expansion by driving enterprise adoption and facilitating access to more platforms. A key milestone includes the strategic partnership with 342 to build one of France's most powerful AI compute facilities, which will be powered by Instinct accelerators. Moreover, the acquisition of Zt Systems has bolstered systems design expertise, allowing AMD to provide ready-to-deploy rack-level AI solutions. The Mi 300 series is also being sample to multiple customers, with plans for accelerated production by mid-year, further supporting the expansion of AI infrastructure.

A：The new Ryzen processors set new sell-out records and topped bestseller lists at leading global retailers, with significant performance gains in gaming and productivity. The launch of the Ryzen 5000 series in the mobile segment delivered higher performance than the competition.

A：AMD based notebook sell-through was very strong, and there was strong demand for the new generation of APU processors, leading to increased sales quarter on quarter. The first notebooks powered by new high-end Ryzen AI Max Plus and mainstream Ryzen AI Vector 300 series processors received positive reviews and set new standards for computing and graphics performance.

A：Gaming revenue decreased 30% year over year, but there was strong demand for the Radeon Quest, which launched to strong demand with record first-week sell-out. FSR was introduced as a new rendering technology to enhance gaming experiences. Despite challenges, the segment worked on inventory replenishment and addressing sustained demand.

A：The first quarter revenue for the embedded segment decreased, but demand is recovering gradually. The outlook for the second half of the year includes improving demand in key markets and initial shipments of new products. The segment is expected to return to year-over-year growth driven by reduced inventory levels and an improving demand environment.

A：The company expects strong double-digit percentage revenue growth for Zen 5, Epic, Ryzen, and Radeon businesses, and a ramp-up of Instinct MI 350 series accelerators in the second half of the year. Full-year growth is anticipated in the semi-custom business and for the embedded business, supported by a strategic opportunity to further differentiate AMD through product roadmaps that combine leadership compute and AI capabilities.

A：Record first quarter revenue of $5 billion was up 68% over the prior year, with gross margin at 54%, operating income at $1.8 billion, and diluted earnings per share at 96 cents. Growth was attributed to the data center segment and a strong client and gaming segment despite sequentially lower data center segment revenue.

A：The recently announced export controls for Mi Xi shipments to China have an impact on revenue expectations, with a projected $300 million reduction in revenue from this segment. The company remains confident in its ability to grow revenue and execute on strategic priorities despite these challenges.

A：The performance strength in the client business during the first quarter was driven by a stronger mix of products and an increase in overall Average Selling Price (ASP), particularly in the desktop channel which includes strong gaming products. Additionally, there was an unexpected strength in the commercial segment which was previously underrepresented.

A：In the second quarter, the client business is continuing to show strength with desktop performing above typical seasonality, a ramp in the commercial segment, and continued strength in gaming which is much better than typical seasonality. The business is also seeing sequential growth in the data center segment with the AIB business ramping and consoles starting their inventory replenishment. Despite a $700 million headwind from new export controls, the outlook for the second quarter is strong.

A：The Instinct family's performance in the first quarter was in line with or slightly better than expectations, with customer interest being very high. The anticipated mid-year launch of the Mi 350 series is on track, and several deals, including a relationship with Oracle, have been announced. The expectation is for strong growth in the second half of the year due to investment in AI infrastructure.

A：The data center GPU business had a very strong performance in the first quarter, growing significantly with most of the additional revenue expected to come out in the September quarter (Q3). There was a minimal impact in the first quarter with the majority of the revenue expected to transition in Q3 and very little in Q2.

A：The increase in inventory is primarily due to the need to support the strong client and server ramp as well as the second half data center GPU ramp. Long lead times for future product ramps necessitate starting the production process with wafers immediately, which explains the increase in inventory.

A：The company is excited about the upcoming Mi 3 series launch and is well-prepared for it due to the Zt acquisition, which was done precisely to address large-scale, data center needs. The team is actively planning and designing with their Zt design team and customer design teams to address potential challenges from past deployments. The Mi 400 series has generated high enthusiasm from customers, and efforts are being made to learn from past deployment challenges.

A：The strong enterprise and on-premise server market share growth is attributed to several factors including the strength of the product, broadened product portfolio for varied core counts and frequency ranges, and significant investments in the go-to-market space with added headcount and capabilities. The company is focusing on direct engagement with end-users and leveraging learnings from each deployment to benefit a wide range of industrial partners.

A：The expected impact of the $1.5 billion revenue reduction is that $700 million will be taken out in Q2 and the majority in Q3, affecting the company's financials in those periods.

A：Yes, it is a fair assessment to expect a return to a 54% plus gross margin in the back half of the year, considering the mix attributes. This is because the Q2 gross margin, excluding an 800 million charge related to the Mi 308, is around 52-4%, and factors such as improving client business gross margin and data center market share growth are expected to contribute to a slight improvement in the second half.

A：Yes, the company feels it has all the necessary pieces required for system level optimization, including partnerships with other industry players offering capabilities such as CPU, GPU, networking, and rack-scale architecture. They are focused on ensuring interoperability across different solutions, particularly in the interconnect space.

A：The client business experienced unit growth, especially in desktops, and most growth was in high-end notebooks, commercial, and desktop overall. Market growth for the client business is expected to continue, and the company is seeing overall revenue share growth in the right places.

A：The company is closely aligning with customers, monitoring inventory levels, and assessing consumption and sell-through to ensure a good overall inventory position. They are being agile in responding to changes and believe there is not a significant amount of pull-in or other impacts from macroeconomic factors.

A：Yes, GPU sales grew sequentially in Q1. The MI 308 model contributed to the revenue but is not specified in the exact amount. MI 325 and MI 300 were a majority of the revenue in Q1.

A：AI diffusion rules and China export controls have a limited impact on the addressable market opportunity for AI accelerators as the company had already factored in the expectation of limitations on leading-edge GPUs into their Total Addressable Market (TAM) expectations. Active engagement with the government on AI diffusion rules is ongoing to ensure the continued use of the U.S. AI platform globally. The company is investing effort to ensure the rest of the world understands the importance of the overall ecosystem and the benefits of U.S. technology.

A：Traditional seasonality should not be factored into expectations for the second half of the year because the first half outperformed typical seasonal expectations. The company's guidance for the second half is based on a subseasonal period, and they are currently in a strong upgrade cycle for desktop business with continued strength in the gaming segment. The company is ramping up production to ensure the channel is full.

A：The strategies to maximize the learning cycle for rack scale solutions include working closely with hyperscale partners to define solutions and addressing various areas that may require work, as well as collaborating with OEM partners who have gained insights from recent rack-scale solutions.

A：Yes, it is expected that the GPU business will grow year over year in the second half of the year, specifically in the fourth quarter, as the company anticipates strong double-digit growth for the full year following a decline in the second quarter attributed to specific, known factors.

A：The decline in server GPUs in the first quarter was less severe than the overall data center performance decline, indicating a more modest sequential decrease. The data center performance as a whole declined 5%, suggesting a better position for server GPUs compared to other components.

A：Signs of recovery in the embedded space for the second half of the year include improving order patterns and a better book-to-bill ratio, particularly in aerospace and defense and test measurement segments. There is also a sequential improvement in the industrial segment, although inventory issues still exist, and the overall demand pattern is improving.

A：Investors should understand that the incremental Opex from Zt is about $50 million, and the $2.3 billion figure includes everything related to Zt because the transaction closed on March 31. For the full year and the second half, investors should expect continued revenue growth to outpace Opex growth, with earnings per share growing much faster than revenue growth.

A：Cloud customers are looking for optimization around the use of multiple models and are seeking inference solutions that are cost-effective and efficient. AMD's product offerings with advantages in memory bandwidth and capacity are designed to meet these needs. Cloud customers are adopting a variety of models for different workloads, and AMD is addressing this trend with their software optimizations.

A：The company's strategy is to provide competitive TCO and choice to customers, leveraging their diverse product offerings that include both CPUs and GPUs. They aim to expand the overall inferencing capability in the market, believing that there is a place for both ASICs and CPUs in the evolving AI landscape. The company sees an opportunity to influence the market positively and is enhancing its training capabilities as well.